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Key Takeaways

• Poor communication in manufacturing often leads to decreased productivity, safety hazards, increased errors, and low employee morale.
• Due to the dynamic environment ETO manufacturers work in, Custom Machine Builders need to invest in and maintain a means of reliable communication. Doing so will help ensure efficiency and accuracy on every project.
• The best ERP for small businesses is one that integrates with your other software systems, including CAD and accounting. The ERP should help you standardize communication protocols and enable cross-functional teams.

Improving Communication for ETO Manufacturers

Have you heard of the 5 C’s in communication? These terms are often used to describe what good communication is.

1. Clear
2. Correct
3. Concise
4. Compassionate
5. Complete

Think of it as a checklist for your emails, meetings, and more.

Effective communication is crucial in any industry, but it plays a particularly vital role in the manufacturing sector. With complex processes, diverse teams, and a continuous flow of information, optimizing communication can substantially enhance efficiency, productivity, and overall performance. In this article, we’ll explore the importance of communication in manufacturing. Furthermore, we’ll learn how to overcome communication issues you’re experiencing.

Why Invest in Totally Better Communication

Improving communication in ETO manufacturing is not just a matter of convenience; it’s a strategic necessity. The following are just a few areas in your organization that will improve along with your communication.

• ERP BOM management: procurement needs to start sourcing materials as early as possible. Unfortunately, Engineers tend to withhold the BOM until the entire design is complete.
• Overseeing vendors: if your parts are late, your project is likely to be as well. Purchasing needs to monitor materials and their vendors – but preferably without annoying the vendors.
• Client relationships: the ability to articulate the value proposition of a product or service, understand customer needs, and address concerns is paramount.
• Inventory management: Whether you’re fabricating parts internally, or expediting an order, your team will work more efficiently with ERP inventory management software.

The Impact of Poor Communication in Manufacturing

According to a study by the Project Management Institute (PMI), 29% of project failures are due to internal communication problems. So, improving how your organization communicates isn’t just about the benefits above, it’s about avoiding problems caused by faulty communication. These could include:

• Decreased productivity
• Increased error rates
• Production delays
• Poor quality or workmanship
• Safety hazards
• Increased costs
• Supply chain disruptions
• Low employee morale

Communication in ETO Manufacturing

As we’ve seen, there are many good reasons for any organization to improve its communication skills. For Engineer To Order manufacturing companies, it’s especially important. Custom Machine Builders operate in a dynamic environment. Each product is tailored to meet specific customer requirements. Clear communication is needed to gather accurate specifications, ensuring customers get what they need.

Engineer To Order projects can be difficult to coordinate. ETO manufacturing involves multiple teams working on different aspects of the same project, at the same time. Without a solid communication system in place, it’s very difficult to coordinate such diverse teams. Finding an ERP that ETO manufacturers can work with makes this substantially easier. Total ETO, for example, provides full project visibility. Your team can track the project workflow and see reporting metrics at all stages of a project.

Additionally, Integrators, Panel Shops, and OEMs face a lot of change requests from their clients. This is one of the reasons why it’s difficult to manage the BOM. Engineering, for example, will release the BOM to procurement, but a week later the design changes. Procurement needs to know immediately to issue change orders. Improved communication, often through an ERP,  facilitates the flow of information between engineering, procurement, and manufacturing. Your team can work confidently and efficiently, knowing each department always has access to real-time information.

How to Improve Communication in Manufacturing

The Harvard Business Review analyzed what was most needed to improve communication in the manufacturing industry. The study showed that timely updates, clear expectations, and responsive communication increase customer satisfaction by 25%… another great reason to invest in communication solutions. So, let’s explore how.

• Employee training: It’s great to start new staff off by teaching best practices and standards to your new employees. However, your current team will need proper training, too. When you invest in a program that focuses on improving communication skills, it should involve both technical and soft skills. For ETO manufacturers this should include how to collaborate and share information in your environment.
• Standardize communication protocols: It’s a great feeling when your standard operating procedures are improved. By clearly defining your processes, you eliminate ambiguity. To do this, you need a strong internal communication strategy. This ensures that staff understands their roles and responsibilities. A manufacturing requirements planning (MRP) system is a great tool for staying on track. Being able to, for example, add notifications for key staff as each department completes its tasks, takes away any guesswork.
• Establish communication channels: We have so many ways to communicate now, but for some reason, communications continue to fail. Knowing which platform or apps to use is part of establishing communication channels. It’s also important, however, to consider when you communicate. Regularly scheduled meetings, both formal and informal, are always recommended. They help ensure a project progresses as it should. They’re also a great environment for addressing concerns, sharing updates, and finding more ways to improve.
• Enable cross-functional teams: Encourage cross-functional collaboration by arranging a  team that includes representatives from various departments. This builds a holistic understanding of your manufacturing processes. It also creates empathy and patience throughout the organization, as your departments now understand the struggles everyone is facing.
• Consider company culture: Promoting a culture of open communication pays off in many ways. Employees need to feel comfortable expressing concerns and ideas and providing general feedback. Many organizations find it beneficial to provide a channel for anonymous feedback.

Practicing good communication in manufacturing can assist all organizations, big and small. Adopting these strategies can help create a more efficient and collaborative environment, something all Custom Machine Builders value. Plus, the improved performance throughout will set your team up for exponential growth.

Can an ERP/MRP System Help

Yes, big time!

The best ERP system for Custom Machine Builders is one that will match their workflow. When Integrators, Panel Shops, and OEMs implement an ERP or MRP system, communication improves almost instantly. The caveat is ensuring the platform is designed for ETO manufacturing. With Total ETO, your team can:

• Integrate directly with SOLIDWORKS, Inventor, and other popular CAD systems.
• Route parts between various tasks, tracking both internal and external processes. That means you’ll always know what parts have arrived and which ones you’re still waiting for (in real-time).
• Ensure parts are inspected and check who completed the inspection. Additionally, it’s easy to record and follow up on quality issues on the shop floor, from engineering, or for purchased parts with embedded non-conformance reports.
• Set project milestone dates for key events.
• Easily link files to the project for quick reference without creating duplicates.
• Add notifications for other employees as each department completes its tasks.
• Cost out the BOM before purchases are made.
• Record and track estimates to competition for accurate percentage complete revenue recognition. Subsequently, this also allows you to provide sales with essential estimating information. That means you can better quote and secure more projects.

Each one of these features improves communication in ETO manufacturing. Above all, they improve your teams’ morale, efficiency, and accuracy. Want to see why Total ETO is the best ERP solution for small to mid-sized Custom Machine Builders? Book a demo and experience it for yourself.

Written by Rebecca Rivard